A sports hall will be built at Dyson Perrins CE High School in Malvern after a lottery bid was accepted.
The hall will be used by pupils during the day and will be available for public use at evenings and weekends.
Malvern Hills District Council has put £434,000 into the project and Worcestershire County Council has invested £400,000.
The remainder of the £1.3 million has come from a National Lottery Grant.
"We're absolutely delighted to hear our lottery bid has been successful," said district council leader Tom Wells.
"This will be an asset to the school and the wider community."
The district council will invest £50,000 each year to run and maintain the hall indefinitely.
Construction work will start in the near future and is due to be completed in April 2006.
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